Saudi Arabia - missile attack on oil facilities on Mar 7

[dan_s]

This is not getting the media attention that it deserves in the U.S. because Covid-19 fear mongering, Cuomo's sex scandal and Trump basing are much better click bait. This sent Brent over $70/bbl, an oil price no one thought possible just 3 months ago.

(Bloomberg) -- Saudi Arabia said one of the most protected
crude facilities in the world came under missile attack on
Sunday, in a clear escalation of hostilities that sent oil
prices surging.
The drone and missile attacks were intercepted and crude
production appeared to be unaffected. But the latest in a spate
of assaults claimed by Iran-backed Houthi rebels sent oil prices
above $70.
The attacks are the most serious against Saudi oil
installations since a key processing facility and two oil fields
came under fire in September 2019, cutting oil production for
several days and exposing the vulnerability of the Saudi
petroleum industry. That was claimed by Yemen’s Houthi rebels,
although Riyadh pointed the finger at arch-rival Iran.
On Sunday, the Saudi Energy Ministry said a storage tank in
the Ras Tanura export terminal in the country’s Gulf coast was
attacked by a drone from the sea. Shrapnel from a missile also
landed near a residential compound for employees of national oil
company Saudi Aramco in Dhahran. Witnesses reported an explosion
rocking the city, and windows shaking.
“Both attacks did not results in any injury or loss of life
or property,” said a spokesman for the Saudi Energy Ministry. A
person familiar with the situation also said oil output was
unaffected.

Massive Facility

Ras Tanura is the world’s largest oil terminal, capable of
exporting roughly 6.5 million barrels a day -- nearly 7% of oil
demand -- and as such one of the world’s most protected
installations. The port includes a large storage tank farm where
crude is kept before it’s pumped into super-tankers.

The key export facility is the so-called “Sea
Island” (actually, 3 interconnected offshore platforms) where
super-tankers dock.
A Saudi-led coalition has been fighting the Iran-backed
Houthis in Yemen’s civil war since 2015.
On Sunday, it carried out retaliatory air strikes on
Yemen’s capital, Sana’a. It said it intercepted missiles and
drones launched at the kingdom from neighboring Yemen, just as
the Houthi rebels claimed a series of attacks -- including one
on Ras Tanura.
The group launched eight ballistic missiles and 14 bomb-
laden drones at Saudi Arabia, a spokesman for the Houthis, Yahya
Saree, said in a statement to Houthi-run Al Masirah television. < These weapons are provided by Iran
The Houthis have stepped up assaults on Saudi Arabia and
last week claimed they hit a Saudi Aramco fuel depot in Jeddah
with a cruise missile. It wasn’t clear how much damage had been
caused. While such assaults rarely result in extensive damage,
their frequency has created unease in the Gulf.
The Houthis have been fighting Yemen’s United Nations-
recognized government since 2014. The Saudi-led coalition
intervened the following year to back the government. The UN has
called the conflict -- in which tens of thousands have died --
the world’s worst humanitarian crisis.
The Saudi-led coalition said a recent U.S. decision to
revoke the designation of the rebels as terrorists had fueled
the rise in attacks. The Biden administration has moved to ditch
the designation, which was adopted toward the end of President
Donald Trump’s time in office and was seen as a way of
increasing pressure on Iran. MY TAKE is that Iran is behind this as a way to test Biden. He better be careful because an escalation will send oil and gasoline prices much higher.

[dan_s]

Reuters: https://www.investing.com/news/commodit ... ed-2439573

Oil Prices to start the week: https://www.investing.com/analysis/oil- ... -200565696